For Immediate ReleaseJune 14, 2012
Toronto – The Canadian Securities Administrators (CSA) are publishing for a second comment period, proposed amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, which would require registered dealers and advisers to provide investors with clear and meaningful information on the costs and performance of their investments.
This Proposal includes, among other things, requirements for registered dealers and advisers to provide their clients with annual reports that show them:
In June 2011, the CSA initially published the Proposal based on consultation with investors and industry. Approximately 2,000 investors were surveyed and document testing sessions were held to gain better insight into investors’ understanding and expectations related to fees, performance measurement and reporting.
After reviewing public comments on the 2011 Proposal, conducting additional investor research and industry consultation, the CSA are now proposing some enhancements and added requirements to the 2011 Proposal, which include:
“This is an important investor protection initiative that aims to help investors better understand the costs and performance of their investments,” said Bill Rice, Chair of the CSA and Chair and Chief Executive Officer of the Alberta Securities Commission. “With the proposed changes, investors will be able to better assess their progress towards meeting their financial goals and the value of the professional advice they receive.”
The Notice, Request for Comment and reports on the investor surveys and document testing will be available on CSA members’ websites. The comment period is open until September 14, 2012.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
Carolyn Shaw-RimmingtonOntario Securities Commission416-593-2361
Sylvain ThébergeAutorité des marchés financiers514-940-2176
Richard GilhooleyBritish Columbia Securities Commission604-899-6713
Mark DickeyAlberta Securities Commission403-297-4481
Ainsley CunninghamManitoba Securities Commission204-945-4733
Wendy Connors-BeckettNew Brunswick Securities Commission506-643-7745
Shirley LeeNova Scotia Securities Commission902-424-8586
Dean MurrisonSaskatchewan Financial ServicesCommission306-787-5842
Janice CallbeckPEI Securities OfficeOffice of the Attorney General902-368-6288
Doug ConnollyFinancial Services Regulation Div.Newfoundland and Labrador709-729-2594
Helena HrubesovaYukon Securities Registry867-667-5466
Louis ArkiNunavut Securities Office867-975-6587
Donn MacDougallNorthwest TerritoriesSecurities Office867-920-8984
Published on June 22, 2011, the proposal to amend National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103), would require registered dealers and advisers to deliver enhanced disclosure about the costs of investing and investment performance reports to their clients.
In response to public comments, today’s publication includes some amendments to the 2011 Proposal and some new requirements to make the information investors receive more complete.
This as an important investor protection initiative. By informing investors of the costs and performance of their investments, investors would be able to assess their progress toward meeting their investing goals and the value of the professional advice they receive. The federal Financial Literacy Task Force Report states that “increasing the knowledge, skills and confidence of Canadians to make responsible financial decisions will help them meet their personal goals, enhance their quality of life and make Canada more competitive.”
The proposed amendments are intended to form a common baseline for reporting to all investors. They would apply in all CSA jurisdictions, and we would expect the requirements for members of the Investment Industry Regulatory Organization of Canada (IIROC) and the Mutual Fund Dealers Association of Canada (MFDA) to be materially harmonized.
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